Saudi remittance levels to reach $43bn by 2028

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Saudi Arabia’s outbound remittance market is expected to rise to $42.7 billion by 2028 from $38.56 billion in 2022, a compound annual growth rate (CAGR) of 1.7 percent, according to a report.

The growth will be driven by cross-border monetary transactions from the kingdom, according to Research and Markets, a consultancy based in Dublin.

The inbound market is anticipated to grow even more robustly, with a CAGR of 2.7 percent. This surge will propel the market from $291.7 million in 2022 to an estimated $328.7 million by 2028, reflecting a solid foundation for international remittances in the region.

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One of the driving factors behind this market expansion is the adoption of diversified remittance channels, primarily digital and mobile platforms. 

“As consumers shift towards convenience and accessibility, these channels are playing a vital role in the current and future landscape of the remittance market,” the report added.

Growth in Saudi Arabia’s remittance market is closely linked to the evolving demographics of the migrant population.  

Remittance flow between the kingdom and Kenya rose 30.3 percent in the first eight months of 2023, the report said.

In December 2023, remittances to Middle East and North African countries are forecast to fall by 5.3 percent to about $61 billion in 2023, the World Bank said in its latest Migration and Development Brief.

The drop in the figures is driven by a sharp decline in recorded money transfers to Egypt, which is the region’s largest recipient.